Frequently Asked Questions

What is an indemnitor?

An indemnitor is the financially responsible party that signs the indemnity agreement wherein they agree to indemnify and hold the surety company harmless from any and all losses.  In effect they are guaranteeing to repay the surety company in the event the surety company pays out a loss on a bond.

Why does my spouse have to sign an indemnity agreement?

Most, if not all, surety bonds require spousal signature on the indemnity agreement due to community property concerns and to better secure their collection position in the event of payment on a surety bond claim.

Why is my credit score a factor in getting a surety bond?

Surety bonds are a credit relationship and surety companies utilize consumer credit scores for underwriting the risk and setting the premium amount charged for your required bond.

What is a surety bond?

Surety bonds are a 3 party credit agreement, wherein the surety company extends their credit on behalf of the principal to the obligee for consideration (premium) based upon the creditworthiness of the principal.

What is a Bond Principal?

Principal is the business/business owners who are required to post the surety bond(s)

What is an Obligee?

Obligee is usually a government entity (city, state, county or municipality) or a project owner.  They require the surety bond to protect the interests of the citizens of the government entity or their own interest on the project at hand.

What is a Surety Company?

Surety Companies are usually owned or part of an Insurance Company.  They leverage their financial stability and creditworthiness on behalf of many principals to many obligees

What is Indemnity?

Indemnity is the process in which one party guarantees, through a signature on an agreement, to hold the other party harmless and free from loss or exposure to loss. 

How long is my bond good for?

Most surety bonds are established for a 1 year term, unless otherwise specified.

What is Surety Bond Premium?

Surety Bond Premium is the amount charged for the issuance/execution of a surety bond by the surety company.

How much will my bond cost?

Surety bond costs vary dependant on the underlying risk/guarantee and the financial strength and/or credit worthiness of the individuals who are providing indemnification to the surety company.

How do I apply for a Surety Bond?

Applying for a surety bond through has never been easier.  Simply complete our online application and let our expert staff find you the best rate with the least amount of time on your part!

What happens if I get a Surety Bond Claim?

In the event that you suspect you may be involved in a surety claim situation or that you have already been named in a claim, you will want to be in direct contact with the surety company and if possible, resolve the issue with the claimant before it results in a claim.  Claims or a history of claims issues can directly affect your ability to secure surety bonds in the future.

What if I have had a Surety Bond Claim in the past?

Always disclose your past claims issues to your underwriter.  If you still have an outstanding claim or claim balance with a surety company, you will need to be resolving or making some kind of reparations with the surety company so that you will not have issues obtaining surety bonds in the future.

Is a Surety Bond insurance?

This is a common misnomer.  While surety bonds are usually backed by an insurance company, they are not insurance.  Insurance works on the theory of pooled risks, wherein the insurance company combines risks that are similar and charge a premium according to their forecasting of what losses will be sustained.  Surety Bonds are underwritten on the zero loss philosophy, wherein the principal, at the time of execution, appears to be able to perform their obligations without a loss.  The premium charged is more of an underwriting expense, although it has been shifting to help cover losses based on a classification of guarantee.

What is a Commercial Surety Bond?

Commercial surety bonds are a classification of surety bond wherein the obligation is one of compliance, performance or guarantee and is not otherwise classified as Contract, Court or Fidelity.

What is a Miscellaneous Surety Bond?

Miscellaneous surety bonds are a classification of surety bond wherein the obligation is not classified in any of the other classification types.  Typically these bonds are bulked in with Commercial Surety Bonds.

What is a License & Permit Surety Bond?

License and permit surety bonds are a sub-classification of Commercial Surety Bonds.  They are utilized in conjunction with securing a License or Permit for a business or individual transacting business.

What is a Contract Surety Bond?

Contract surety bonds are a classification of surety bond wherein the underlying guarantee is usually construction related or based upon a written contract between two parties.

What is a Court Surety Bond?

In many instances parties involved in court proceedings are required to post a surety bond.  There are many different classifications of Court Surety Bonds, so wether you are acting as a fiduciary in a probate case or are a plaintiff or defendant in a civil or judicial proceeding, A1SuretyBonds can get the bond you need.

What is a Payment & Performance Surety Bond?

Payment and Performance surety bonds are a subset of Contract Surety Bonds, wherein these two bonds are issued in conjunction with one and other or individually to provide guarantees of performance and payment with regard to the underlying contract.

Why do you need my financial statements to get a Surety Bond?

Financial statements are sometimes a requirement in the surety bond application process to verify financial strength and wherewithal of the business and its owners.  Since surety bonds are an extension of credit, you can see how it mimics the requirements of an unsecured loan.

Get Your Bond Today.

It's fast and easy to get your bond.

Apply online for a quick decision. Call (800) 737-4880 to talk to our bond experts.

Apply Now